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Log In / Register | Aug 17, 2017

The Ugly Truth: Are Your Employee Handbook Policies and Non-Compete Agreements a Recipe for Litigation?

A question often asked by employers is whether they are legally required to have an employee handbook, and the answer is “no.”  A much better question to ask is whether it is a good idea for employers to legally protect themselves with a well-drafted and up-to-date employee handbook, and the answer to that question is a clear and definitive “yes.” 

A good employee handbook provides a road map for your company, and introduces employees to your culture, mission and values.  It should clearly and concisely communicate your policies, procedures and expectations to your employees and provide guidance to your supervisors.  In the event of employment litigation, what you have in your handbook as far as reporting harassment or discrimination, accommodating disabilities or religious beliefs, granting leave under the FMLA, or wage and hour issues, could make the difference between prevailing in a lawsuit, or having to pay an adverse judgment.

However, recent changes in how federal agencies interpret existing employment law, combined with outdated, poorly drafted or “boilerplate” policies, can turn your employee handbook into a recipe for costly litigation.  Likewise, a poorly drafted non-compete agreement that is found to be unenforceable, can result in the loss of business, customers and trade secrets.  Learning the “ugly truth” about these issues can go a long way in avoiding even uglier litigation.

Employee handbooks and non-compete agreements are valuable tools in effectively running your company and protecting your valid interests. Careful attention to tailoring both to your particular business is the best way to avoid a recipe for litigation.

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